Smartbox Can Bring Price of Insurance Tumbling Down

January 30, 2012

Young campervan drivers may soon have the chance to get cheap motorhome insurance by proving their driving is up to scratch from a device fitted to their campervan.

With insurance premiums on young drivers approaching three times the average price of a vehicle insurance policy in the UK, young drivers need every help they can get in affording that all important insurance document. The latest idea being put forward is the use of telematics in the vehicle which will tell an insurer just how capable and responsible the driver is.

The idea is catching on quickly and before long it is anticipated that every insurance company will use telematics to assess the premiums on vehicle insurance policies. It is quite simple really. A mechanic fits a telematics device or “smartbox” into your car and from that moment the device records the driving patterns and manoeuvres carried out by the driver. The box will “score” the driver on their handling of the campervan and the box will typically have four categories it marks on: speed, braking and acceleration, cornering and driving time during anti-social hours (the time between 10pm and 6am).

Drivers who consistently score high marks will see a reduction in their premiums, those who don’t will probably look for a new insurer. Early results are very promising with insurers reporting that young drivers who sign up for the box tend to have 30% less accidents than the average rate for their age. Good driving can knock hundreds of pounds off premiums for young drivers as 18 year old Tom McClusky discovered. He revealed that his policy premium halved after a year driving with the smartbox in his vehicle.

He said: “When I first got a quote the premiums were a minimum of £5,500. I love cars and was desperate to get my own, even though it didn’t make sense financially. I ideally wanted fully comprehensive insurance but it was ridiculously expensive because of my age, gender and address in London. Researching via comparison sites I got the quote down to £3000. While it was still very high, it was so much better than any of the others.”

Tom, a product design student, went on to say: “I must have done OK with my driving because I’ve just renewed my policy and my new premium, fully comprehensive, is £1,700. It’s still almost as much as I paid for my campervan but is a lot less than £5,500.”